Your UK will probably won't do what you think it will
26th June 2026
Most British expats have given at least some thought to their will. A smaller number have actually reviewed it since moving overseas. And a surprisingly large number have done nothing at all, operating on the assumption that it will sort itself out.
It won't.
Cross-border estate planning is one of the most neglected areas of expat financial life. The rules are genuinely complex, they changed significantly in April 2025, and they are about to change again in 2027. Getting this wrong doesn't just create inconvenience for your family. It can mean the wrong people inherit, the wrong tax is paid, and assets you've spent a career building get frozen, disputed, or sold under duress.
This guide covers what British expats living in Asia actually need to know: how UK inheritance tax applies overseas, what Thai law does with your local assets, why your UK will may be insufficient on its own, and what the upcoming pension changes mean for estate planning.
It won't.
Cross-border estate planning is one of the most neglected areas of expat financial life. The rules are genuinely complex, they changed significantly in April 2025, and they are about to change again in 2027. Getting this wrong doesn't just create inconvenience for your family. It can mean the wrong people inherit, the wrong tax is paid, and assets you've spent a career building get frozen, disputed, or sold under duress.
This guide covers what British expats living in Asia actually need to know: how UK inheritance tax applies overseas, what Thai law does with your local assets, why your UK will may be insufficient on its own, and what the upcoming pension changes mean for estate planning.
The scale of the problem
Research from the Money and Pensions Service shows that 56% of UK adults aged 18 and over do not have a will, including 53% of adults aged 50 to 64. Among expats, the problem is arguably worse. People who relocate tend to deprioritise estate planning, assuming their existing arrangements will carry over, or that they'll deal with it once they're more settled. Years pass.
When someone dies without a valid will, they are said to have died intestate. Their estate is distributed according to the Rules of Intestacy, set out in the Administration of Estates Act 1925. Those rules follow a strict hierarchy that may bear no resemblance to your actual intentions. Cohabiting partners inherit nothing. Stepchildren who were never legally adopted inherit nothing. Unmarried partners of any duration have no automatic rights.
For expats with assets spread across multiple jurisdictions, a UK will - even a well-drafted one - may not be sufficient to govern everything you own.
UK inheritance tax: the new landscape
From 6 April 2025, the rules governing who pays UK inheritance tax changed substantially. The concept of domicile, which had shaped expat planning for decades, was replaced with a residence-based test.
From 6 April 2025, if you are a long-term UK resident, your non-UK overseas assets may be subject to inheritance tax. The new test requires an individual to have been resident in the UK for at least 10 out of the last 20 tax years for non-UK assets to fall within the IHT scope.
Crucially, leaving the UK does not immediately resolve your IHT exposure. The minimum tail period after leaving the UK is three years, if you were resident for 10 to 13 of the last 20 years, rising to a maximum of ten years if you were resident for all 20 years.
What this means in practice: a British expat who spent their career in the UK before relocating to Thailand may remain exposed to UK IHT on their worldwide assets for up to a decade after departure. The clock only starts from the point you actually leave.
The standard IHT rate remains 40% on the value of an estate above the nil-rate band threshold of £325,000, which has been frozen since 2009 and is now confirmed frozen until 2031. The residence nil-rate band of £175,000 - available where a qualifying UK home is left to direct descendants - is also frozen at the same level. A married couple can potentially combine allowances to pass up to £1 million free of IHT, but this requires both partners to survive to the second death and proper planning to claim.
The new system provides considerably more clarity and certainty about expatriates' IHT position than the previous domicile framework, and makes cross-border estate planning more straightforward for those who engage with it early.
Research from the Money and Pensions Service shows that 56% of UK adults aged 18 and over do not have a will, including 53% of adults aged 50 to 64. Among expats, the problem is arguably worse. People who relocate tend to deprioritise estate planning, assuming their existing arrangements will carry over, or that they'll deal with it once they're more settled. Years pass.
When someone dies without a valid will, they are said to have died intestate. Their estate is distributed according to the Rules of Intestacy, set out in the Administration of Estates Act 1925. Those rules follow a strict hierarchy that may bear no resemblance to your actual intentions. Cohabiting partners inherit nothing. Stepchildren who were never legally adopted inherit nothing. Unmarried partners of any duration have no automatic rights.
For expats with assets spread across multiple jurisdictions, a UK will - even a well-drafted one - may not be sufficient to govern everything you own.
UK inheritance tax: the new landscape
From 6 April 2025, the rules governing who pays UK inheritance tax changed substantially. The concept of domicile, which had shaped expat planning for decades, was replaced with a residence-based test.
From 6 April 2025, if you are a long-term UK resident, your non-UK overseas assets may be subject to inheritance tax. The new test requires an individual to have been resident in the UK for at least 10 out of the last 20 tax years for non-UK assets to fall within the IHT scope.
Crucially, leaving the UK does not immediately resolve your IHT exposure. The minimum tail period after leaving the UK is three years, if you were resident for 10 to 13 of the last 20 years, rising to a maximum of ten years if you were resident for all 20 years.
What this means in practice: a British expat who spent their career in the UK before relocating to Thailand may remain exposed to UK IHT on their worldwide assets for up to a decade after departure. The clock only starts from the point you actually leave.
The standard IHT rate remains 40% on the value of an estate above the nil-rate band threshold of £325,000, which has been frozen since 2009 and is now confirmed frozen until 2031. The residence nil-rate band of £175,000 - available where a qualifying UK home is left to direct descendants - is also frozen at the same level. A married couple can potentially combine allowances to pass up to £1 million free of IHT, but this requires both partners to survive to the second death and proper planning to claim.
The new system provides considerably more clarity and certainty about expatriates' IHT position than the previous domicile framework, and makes cross-border estate planning more straightforward for those who engage with it early.
The 2027 pension change you need to know about
Estate planning has historically treated pensions as efficient vehicles for passing wealth. Most defined contribution pension funds currently sit outside the estate for IHT purposes, meaning they can be nominated to beneficiaries without attracting the 40% charge.
From April 2027, unused pension funds and death benefits will be brought within the value of a person's estate for IHT purposes.
This is a material change. Under the new rules, where a pension fund forms part of the estate, the combined IHT bill can increase significantly. For example, an individual with a £400,000 pension pot and a £1 million estate could see their IHT liability rise from £270,000 under the old rules to £430,000.
For British expats who have accumulated substantial pension assets alongside other investments, this changes the calculation entirely. Pension nominations - the forms that determine who receives the fund on death - need to be reviewed. Estate structures that assumed pension funds were ringfenced from IHT need to be revisited.
The deadline is April 2027. That is less than a year away.
What Thai law does with your local assets
If you live in Thailand and hold assets here - a condominium, a bank account, company shares, or a long-term lease - those assets do not simply follow your UK will. Thai law applies to all assets located in Thailand, regardless of the nationality of the owner. A British citizen who owns a condominium in Bangkok must follow Thai inheritance law for that asset, even if they have a will drafted in the UK.
Thai law mandates a court-supervised process to validate a will, or where none exists, to determine the lawful heirs and appoint an estate administrator. Without adequate preparation, even seemingly straightforward estates can take several months, or considerably longer, to resolve. All documents submitted to the court must be translated into Thai, authenticated, and in some cases notarised abroad before they are accepted.
During this period, bank accounts and property often remain frozen, leaving families unable to access funds or administer assets until a final court order is issued.
The land question is particularly important. Under Thailand's Land Code, Section 93, foreign nationals are not permitted to own land, even if inherited legally. Following the probate process, foreign heirs are typically given one year to dispose of inherited land or face government-enforced sale. For families where a UK spouse has inherited property held by a Thai partner, this can create serious practical and financial pressure at an already difficult time.
Condominiums are treated differently. Foreigners can inherit and own condominiums under the Condominium Act, subject to the standard foreign ownership limits, as well as other movable assets such as bank accounts, vehicles, and investments.
The practical implication is clear: if you hold assets in Thailand, a separate Thai will covering those assets is not optional. A foreign will can be enforced in Thailand, but it requires extra steps: translation, legalisation, and approval by a Thai court, a process that often adds six to twelve months and can increase probate costs substantially.
The four most common mistakes
Having a UK will but no Thai will. The UK will does not automatically govern Thai-situated assets. It can be submitted to a Thai court, but the delay and cost of doing so are avoidable with proper preparation.
Assuming a spouse inherits everything. Under UK intestacy rules, this is only true up to a point. Where the estate exceeds £322,000 and there are children, the spouse or civil partner receives the first £322,000 plus half of the remaining balance, with the other half divided equally among the children. Unmarried partners receive nothing without a valid will.
Not updating beneficiary nominations. Pensions and life assurance policies pass via nomination rather than through the will. These can be years out of date, naming ex-partners, deceased relatives, or arrangements that no longer reflect your intentions. With the 2027 pension IHT change approaching, these need to be reviewed now.
Assuming life assurance is automatically outside the estate. Life insurance payouts are only outside the estate for IHT if the policy is written in trust. Otherwise, the payout forms part of the estate and is taxed at 40%.
Estate planning has historically treated pensions as efficient vehicles for passing wealth. Most defined contribution pension funds currently sit outside the estate for IHT purposes, meaning they can be nominated to beneficiaries without attracting the 40% charge.
From April 2027, unused pension funds and death benefits will be brought within the value of a person's estate for IHT purposes.
This is a material change. Under the new rules, where a pension fund forms part of the estate, the combined IHT bill can increase significantly. For example, an individual with a £400,000 pension pot and a £1 million estate could see their IHT liability rise from £270,000 under the old rules to £430,000.
For British expats who have accumulated substantial pension assets alongside other investments, this changes the calculation entirely. Pension nominations - the forms that determine who receives the fund on death - need to be reviewed. Estate structures that assumed pension funds were ringfenced from IHT need to be revisited.
The deadline is April 2027. That is less than a year away.
What Thai law does with your local assets
If you live in Thailand and hold assets here - a condominium, a bank account, company shares, or a long-term lease - those assets do not simply follow your UK will. Thai law applies to all assets located in Thailand, regardless of the nationality of the owner. A British citizen who owns a condominium in Bangkok must follow Thai inheritance law for that asset, even if they have a will drafted in the UK.
Thai law mandates a court-supervised process to validate a will, or where none exists, to determine the lawful heirs and appoint an estate administrator. Without adequate preparation, even seemingly straightforward estates can take several months, or considerably longer, to resolve. All documents submitted to the court must be translated into Thai, authenticated, and in some cases notarised abroad before they are accepted.
During this period, bank accounts and property often remain frozen, leaving families unable to access funds or administer assets until a final court order is issued.
The land question is particularly important. Under Thailand's Land Code, Section 93, foreign nationals are not permitted to own land, even if inherited legally. Following the probate process, foreign heirs are typically given one year to dispose of inherited land or face government-enforced sale. For families where a UK spouse has inherited property held by a Thai partner, this can create serious practical and financial pressure at an already difficult time.
Condominiums are treated differently. Foreigners can inherit and own condominiums under the Condominium Act, subject to the standard foreign ownership limits, as well as other movable assets such as bank accounts, vehicles, and investments.
The practical implication is clear: if you hold assets in Thailand, a separate Thai will covering those assets is not optional. A foreign will can be enforced in Thailand, but it requires extra steps: translation, legalisation, and approval by a Thai court, a process that often adds six to twelve months and can increase probate costs substantially.
The four most common mistakes
Having a UK will but no Thai will. The UK will does not automatically govern Thai-situated assets. It can be submitted to a Thai court, but the delay and cost of doing so are avoidable with proper preparation.
Assuming a spouse inherits everything. Under UK intestacy rules, this is only true up to a point. Where the estate exceeds £322,000 and there are children, the spouse or civil partner receives the first £322,000 plus half of the remaining balance, with the other half divided equally among the children. Unmarried partners receive nothing without a valid will.
Not updating beneficiary nominations. Pensions and life assurance policies pass via nomination rather than through the will. These can be years out of date, naming ex-partners, deceased relatives, or arrangements that no longer reflect your intentions. With the 2027 pension IHT change approaching, these need to be reviewed now.
Assuming life assurance is automatically outside the estate. Life insurance payouts are only outside the estate for IHT if the policy is written in trust. Otherwise, the payout forms part of the estate and is taxed at 40%.
Getting the structure right
Estate planning across jurisdictions requires coordination between advisers who understand both sides of the picture: a UK-qualified adviser familiar with the new long-term residence IHT rules, working alongside a local legal specialist in the country where you hold assets. Neither alone gives you the full picture.
The fundamentals are straightforward. Review your UK will to ensure it reflects your current wishes and family situation. Establish a separate Thai will for Thai-situated assets. Review all pension nomination forms before April 2027. Check whether any life assurance policies should be written in trust. Understand your IHT tail under the new residence-based rules -- how many years of UK residence you have behind you determines how long your exposure persists after leaving.
None of this is complicated to address when planned in advance. It becomes complicated when it isn't.
If you have not reviewed your estate planning arrangements since moving overseas - or since the April 2025 rule changes - now is a reasonable time to do so. We are not solicitors and this is not legal advice, but we work closely with clients to ensure their overall financial plan accounts for what happens when they are no longer around.
To arrange a free, no obligation initial chat, hit the button below.
Estate planning across jurisdictions requires coordination between advisers who understand both sides of the picture: a UK-qualified adviser familiar with the new long-term residence IHT rules, working alongside a local legal specialist in the country where you hold assets. Neither alone gives you the full picture.
The fundamentals are straightforward. Review your UK will to ensure it reflects your current wishes and family situation. Establish a separate Thai will for Thai-situated assets. Review all pension nomination forms before April 2027. Check whether any life assurance policies should be written in trust. Understand your IHT tail under the new residence-based rules -- how many years of UK residence you have behind you determines how long your exposure persists after leaving.
None of this is complicated to address when planned in advance. It becomes complicated when it isn't.
If you have not reviewed your estate planning arrangements since moving overseas - or since the April 2025 rule changes - now is a reasonable time to do so. We are not solicitors and this is not legal advice, but we work closely with clients to ensure their overall financial plan accounts for what happens when they are no longer around.
To arrange a free, no obligation initial chat, hit the button below.
